Wednesday, October 21, 2020
Report Islamic multilateral bank experiments with Shariah compliant social cryptocurrency

Islamic multilateral bank experiments with Shariah compliant social cryptocurrency

The IDB Group intends to drive development and financial inclusion in its member countries using a blockchain-based financial instrument.

The Islamic multilateral financier is teaming up Belgian and Saudi fintech companies to roll out the product.

Just as Ateon Technology and SettleMint are assisting Bank Aljazira in developing a blockchain use case for identity management (See Report pg 9), the two parties are also on board to help the IDB (through its research arm, the Islamic Research and Training Institute) to build a use case using blockchain smart contracts to create Muslim-friendly financial products.

Husam Yaghi, the president of Ateon, told IFN Fintech that the first project to be undertaken is a proof of concept utilizing Shariah compliant social cryptocurrency.

A technical feasibility study of the product would be carried out, followed by an analysis of the economic effects in preparation for the actual application of the product. If it comes to fruition, the new instrument may be rolled out across the 57 member countries of the IDB.

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